- The US Dollar has finally found some element of short-term resistance after the bullish breakout has driven price action throughout August. Resistance appears to be coming-in from the 23.6% Fibonacci retracement of the 2011-2017 major move, and this was the first target for the US Dollar in our Q3 Technical Forecast for the currency. An additional topside target remains from that forecast, and with half of the quarter remaining, that remains a feasible expectation.
- The remainder of this week’s economic calendar is extremely light of US items, with only retail sales (tomorrow) followed by University of Michigan Consumer Sentiment (Friday). The more pressing US Dollar driver may be something that’s not directly related to the US at all, as UK inflation is sitting on the docket for tomorrow morning. This data point had helped the Dollar to form support in mid-April, just ahead of the topside breakout that remains in play almost four months later.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[2] or the Euro[3] are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
US Dollar’s Bullish Breakout Runs into Fibonacci Resistance
The US Dollar is continuing to hold on to gains from the prior two weeks. The Greenback began
